More woes at Li Ning as finance chief quits
Chief financial officer will remain as adviser to the company, which is struggling with plunging sales and a weakened brand image
The resignation of the chief financial officer at mainland sportswear retailer Li Ning adds uncertainty to a company already struggling with plunging sales and a weakened brand image.
The Beijing-based company said yesterday Chong Yik Kay had resigned, effective from November 1, but would remain as an adviser to the company.
Chong's move follows that of the company's chief executive, Zhang Zhiyong, who stepped down in July.
Li Ning, backed by Singapore sovereign fund GIC and US private equity fund TPG Capital, announced a major management reshuffle in July, appointing Kim Jin-goon, a partner at TPG, as the executive vice-chairman.
Company founder and chairman Li Ning, a former Olympic gymnast, said in a filing to the Hong Kong stock exchange yesterday that the company was in talks with potential candidates for the position of chief financial officer. It is also looking for a new chief executive.
"The company is undergoing a transformation to improve its inventory level and sales channels. But I really doubt whether it's able to make it without the core members in the management team," said Elyse Wang, an analyst at Haitong International Securities.
Li Ning shares rose 3.43 per cent to HK$4.83 yesterday, with investors signalling they think the worst time for the sportswear sector was about to end.